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In this paper, a distribution static compensator (DSTATCOM) model based on optimal angle injection is devised and used in reactive power compensation of radial distribution systems. In the proposed DSTATCOM model, the rating of the DSTATCOM is determined with the injection of optimal phase angle of the voltage at the location, in which a DSTATCOM is placed. The proposed DSTATCOM model is suitably incorporated in the forward‐backward sweep load flow algorithm. The optimal location and rating for DSTATCOM are determined by minimizing the active power loss of a distribution network. Differential evolution algorithm is used as the solution strategy. The 69‐bus radial distribution system is used in the case study. The results show that the proposed approach is more efficient in active power loss reduction as compared with some of the previously published approaches.

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